Credit: Rassco/Adobe Stock
Employers may—but are not required to—implement programs to prevent abuses in their new pension-linked emergency savings account programs (PLESAs), the Internal Revenue Service, said, in initial guidance released last week.
The IRS said that PLESAs, which became effective under a provision in SECURE 2.0 this month, are treated as designated Roth accounts. Contributions are not tax deductible, but withdrawals generally are considered tax free. Participants may withdraw funds held in PLESAs at least once a month, as needed.
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